MS08 said:

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DVN getting hammered today.

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quarter didn't meet expectations

Time to buy a round?!

JuanDurfel said:

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techno-ag said:

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RockOn said:

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Hopefully not holding that JEPI in a taxable account. woof.

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Nope.

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I see this a lot.. why is everyone so scared of the taxes?

You should still see ~6% to 8% net returns after tax.

Yes, the monthly dividends are going to get taxed as ordinary income at the higher tax bracket.

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Aren't dividends taxed at long-term cap gain rates of 15 or 20%?

If I'm remembering that correctly, then the difference is minuscule. It certainly doesn't make it worth your while to avoid dividends at all costs in a taxable account.

But I agree 100% with the rest of your premise.

I knew people that were holding on to old company stock from previous companies they worked for, they didn't believe in the company anymore, and griped about how much of their portfolio was taken by these stocks, but they refused to sell because they didn't want to pay taxes. In fact one guy even told me explicitly that he was going to wait until prices fell back down to his break even and then he would sell. Sheer madness!

deadbq03 said:

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JuanDurfel said:

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techno-ag said:

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RockOn said:

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Hopefully not holding that JEPI in a taxable account. woof.

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Nope.

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I see this a lot.. why is everyone so scared of the taxes?

You should still see ~6% to 8% net returns after tax.

Yes, the monthly dividends are going to get taxed as ordinary income at the higher tax bracket.

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Aren't dividends taxed at long-term cap gain rates of 15 or 20%?

If I'm remembering that correctly, then the difference is minuscule. It certainly doesn't make it worth your while to avoid dividends at all costs in a taxable account.

But I agree 100% with the rest of your premise.

I knew people that were holding on to old company stock from previous companies they worked for, they didn't believe in the company anymore, and griped about how much of their portfolio was taken by these stocks, but they refused to sell because they didn't want to pay taxes. In fact one guy even told me explicitly that he was going to wait until prices fell back down to his break even and then he would sell. Sheer madness!

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JEPI and others that generate income via covered calls are taxed as ordinary income IINM.

I stand corrected. Looked it up and you're definitely right. They're not qualified dividends because the sold call is considered an offsetting position. (Would an ETF that just sold puts be ok?)

The portions of the distribution that come from ordinary dividends of underlying positions are qualified dividends but that's only 15-20% of the total distribution.

Becomes more of an issue if you are in the highest tax bracket, as we all are on this board.

Of course. But as Juan mentioned, you still make money, so if income is the name of the game, this is a great option. Really appreciate y'all sharing.

My FIL is in full-blown income mode, and he's been doing his own covered call strategy for years. It takes a lot of time to manage. I think he's kinda enjoyed it, as something to keep him busy in retirement, but I think he's also now at an age where he's tired of that hassle.

I was able to pass this along to him and he's dipping his toes in the waters to see how it goes. He's excited at the idea of having someone else basically do the same work for him.

Any thoughts on SO (Southern Company) as decent dividend stock? I made a pretty good return last year, near peak.

I like it, it is a solid well run company. I just hope they can finally finish those reactors and quit piling on debt related to them. Good dividend with long history of increases.

This is an interesting article on covered call etfs. Basically he says as the calls are sold they have to buy back the shares at a higher cost and thus you lose your capital over time.

https://seekingalpha.com/article/4582254-ryld-strong-yield-better-results-than-xyld-qyld

Looking into NUSI. Pays 12 cents/mo so about 8.5% at the moment.

https://www.thestreet.com/etffocus/high-yield-ideas/income-etf-that-yields-8-hedges-against-market-crashes

TxAG#2011 said:

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cryption said:

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I've liked QYLD

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I had some annoying stock broker tried to pitch me this the other day. I told him I wasn't interested - period, he STILL calls me.

DNP is one I like

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Stock broker? That calls you? This still happens?

Ford has treated me fairly nicely over the last year or so. Sitting around 5%. Fluctuates between $11-13 a share lately.

EPD Enterprise Pipeline pays 7.74% now.

CDs are over 5% now.

Any thoughts on KNOP st under 5$? They just temp cut back their dividend because a few shipping contracts ran out and to prepare for future.

I keep reading shipping is contracting.

kyle field 94 said:

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Section327Ag said:

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LMCane said:

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I'm going to ask my current 401K admin if they accept JEPI

if so, is that something where there is a large risk of the price collapsing if I want to hold for 25 years?

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Looking at JEPI it is 85% invested in stocks and 15% in S&P500 index call options. So it seems like in addition to the risk in the equities, there is a risk of losing 15% off the top if the market goes opposite of the bets placed.

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Pretty sure that they are long stocks and sell call options against these stocks. They generate income from theoption sales.

They are not long options (I don't think so)

In a falling market and sideways market this will out perform an all stock portfolio

In a rising stock market, this will under perform due to the short call's limiting the potential upside in the market

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You're right. It's covered calls. So constant income, some downside protection, but limits upside potential.

We're still plugging away at tax-deffered, but that growth stash is thereabouts where it needs to be for us to FI in a few years.

Our focus for taxable is income now: JEPI/JEPQ and writing puts (1 DTE / 10 delta on SPX x 5 per week; taxed per 1256).

Section327Ag said:

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kyle field 94 said:

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Section327Ag said:

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LMCane said:

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I'm going to ask my current 401K admin if they accept JEPI

if so, is that something where there is a large risk of the price collapsing if I want to hold for 25 years?

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Looking at JEPI it is 85% invested in stocks and 15% in S&P500 index call options. So it seems like in addition to the risk in the equities, there is a risk of losing 15% off the top if the market goes opposite of the bets placed.

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Pretty sure that they are long stocks and sell call options against these stocks. They generate income from theoption sales.

They are not long options (I don't think so)

In a falling market and sideways market this will out perform an all stock portfolio

In a rising stock market, this will under perform due to the short call's limiting the potential upside in the market

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Ahhhh, Thanks!

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Yep. I have money in each of JEPI and JEPQ in my IRA with dividends around 11% and add $500 in each every month. I feel I won't get the next great runup of equities, but won't get hit as hard as others if the market backs off. I have others including a lot of Tesla, to take advantage of the next stock runup.

MS08 said:

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JEPI - what a yield!! Had no idea. Interesting.

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JEPQ has about the same yield. One is based on Nasdaq and the other S&P.

woodiewood1 said:

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MS08 said:

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JEPI - what a yield!! Had no idea. Interesting.

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JEPQ has about the same yield. One is based on Nasdaq and the other S&P.

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Yessir! Actually threw a stack at JEPQ via my SEP IRA shortly after making my JEPI initial post.

txaggieacct85 said:

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A taxable 11.49% taxable dividend sounds good to me.

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sounds double taxation to me

Try IEP at 15%. Q instead of Monthly. Had it 2 years - holds price around 50.

Here's one for you risk takers and yield chasers. TSLY. Last couple months was about 90 cents/share. This month dropped to about 83 cents.

You're welcome.

https://seekingalpha.com/news/3955030-yieldmax-tsla-option-income-strategy-etf-dividend-declines-by-82-to-08286

BigJim49 AustinNowDallas said:

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Try IEP at 15%. Q instead of Monthly. Had it 2 years - holds price around 50.

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Thoughts and prayers

Frost had 90-day jumbo CDs at 5.15% it 5.18% for 90 days. Seemed decent to me.

AgSwagalicious said:

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BigJim49 AustinNowDallas said:

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Try IEP at 15%. Q instead of Monthly. Had it 2 years - holds price around 50.

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Thoughts and prayers

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BUT THE DIVIDEND YIELD IS NOW 25%!!!!!!!!!!

/S

I put a little of my cash to work today. Bought some JEPI and JEPQ.